Terminology of the market or how to understand what is being said?
In order to avoid confusion during discussions with a real estate agent while selecting a property, we have created a concise cheat sheet to help you navigate through the information presented. We suggest saving this page as a bookmark and referring back to it whenever necessary.
Who can participate in the deal, aside from yourself?
An agent serves as a mediator between the buyer and seller of real estate in Phuket and can help you select an apartment or villa. One significant advantage is that you are not responsible for paying the agent's fees, as they are paid by the seller.
A developer is an investing company that manages the complete range of tasks, from constructing properties to putting them into operation and overseeing subsequent maintenance. They engage contractors, construction teams, architects, designers, and after completing the facilities, hand them over to the managing company.
The process of selecting real estate:
An apartment or unit refers to a "flat" in a residential complex. The number of rooms is counted based on the number of bedrooms, excluding the living room. For example, a one-bedroom apartment includes one bedroom and a separate living room.
Common Area of the condominium encompasses all common use areas in the condominium, such as reception, elevators, and hallways.
A condominium, or condo, is a multi-unit residential complex within a gated and guarded community, which can include one or more buildings (for more details, see our article "Price Segments and Types of Real Estate in Phuket").
Condominium facilities refer to all amenities available for common use by the owners of the condominium, including a pool, gym, sauna, cafe-restaurant, garden, playground, and more.
Freehold is an unconditional form of ownership that transfers all rights of ownership and control of the property for an unlimited period. As a property owner, you have the right to dispose of your property as you see fit: sell, rent, give away, or leave it as an inheritance.
Leasehold is a form of ownership that has a time limit of 90 years.
A villa typically refers to a house with a pool and private parking, located within a gated and guarded community.
A showroom refers to a demonstration version of an apartment or villa.
Important Documents
A Blue-book or House Book (also known as Tabien Baan) is a document that contains the address of a property and information about its owner. The name "Blue-book" or "House Book" accurately reflects the appearance of the document.
A Chanote Title is the primary document that confirms ownership rights.
A Condominium License is a document that confirms the status of a condominium and is issued under certain conditions, such as the requirement that at least 30% of the total area of the development is designated as common property, and the road leading to the property must be at least 7 meters wide for easy access to the condominium.
A Construction Permit is a document issued by the government that gives the developer permission to start construction.
An Environmental Impact Assessment (EIA) Certificate is a document that certifies the environmental safety of the project. It is one of the two documents required to obtain permission to build.
Extra fees and expenses that may apply when making a purchase
The Sinking Fund is a contribution towards capital repairs. It's a reserve account that's spent on capital repairs, elevators, corridors, access roads, and so on.
The Common Area Fee is an annual payment for maintaining the common areas: pool cleaning, garden maintenance, refuse collection, and so on. It's paid in advance for the year, and the price depends on the location, size, and maintenance of the area. It's usually around 2-5 thousand baht per year for apartments and from 5 thousand baht per month for villas.
The Registration Fee is a government fee charged by the Land Department when buying or transferring property rights. The fee for freehold property is up to 6.3%, while for leasehold, it's 1.1%. Typically, it's split 50/50 with the developer.
Have any questions left?
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